STAND. COM. REP. NO.  1473-08

Honolulu, Hawaii

                , 2008

RE:   S.B. No. 1809

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Sir:

     Your Committee on Consumer Protection & Commerce, to which was referred S.B. No. 1809 entitled:

"A BILL FOR AN ACT RELATING TO CONDOMINIUMS,"

begs leave to report as follows:

     The purpose of this bill is to increase participation in condominium association affairs by:

     (1)  Requiring a special meeting of the unit owners' association to be set within 60 days of receipt of a qualifying petition from the unit owners; and

     (2)  Clarifying that if the condominium secretary or managing agent fails to schedule a special meeting requested by the unit owners, the petitioners may set and send out notices and proxies for the special meeting at the association's expense.

     The Hawaii Council of Associations of Apartment Owners and Hawaii Independent Condominium and Cooperative Owners testified in support of this bill.

Section 514B-121, Hawaii Revised Statutes, allows condominium owners to request a special meeting of the association of owners if at least 25 percent of the owners make the request.  If the board of directors does not schedule the meeting, the owners can hold the meeting themselves.  This bill attempts to remove certain obstacles that may interfere with the right of condominium owners to petition for special meetings.

     As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1809 and recommends that it pass Second Reading and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,

____________________________

ROBERT N. HERKES, Chair